SANTHA JEWELLERY Vs. STATE OF KERALA

JUDGEMENT

(1.) WHILE deciding T. R. C. No. 201 of 1990 we have already specified the reason to decide this revision case separately, which we proceed to do hereafter. The assessment year in question is 1987-88. The declared turnover is Rs. 10,70,240 as considered by the assessee for the same reason of rejection of accounts, the assessing authority resorted to the best judgment approach and estimated the turnover in a similar manner, estimating the taxable turnover at Rs. 19,97,400. This was also based on the basis of the situation detected on inspection on March 17, 1988.

(2.) WHAT was found as a result of this surprise inspection is available in the order of the first appellate authority and it is seen that the only item that was found in excess as a result of this inspection is a shortage of 5. 800 grams of gold as against accounted sale of 3. 350 grams.

(3.) HOWEVER, the factual matrix spell out hereinbefore shows that there is a single item of variation showing shortage of only 5. 800 grams as against a total stock of 2,975. 500 grams on the day of inspection. This situation is re-emphasized by the first appellate authority with a description that the stock variation is very very small when compared with the total stock held at the time of inspection.